Employee Stock Ownership Plans

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Employee Stock Ownership Plans (ESOPs) is formal programs that transfer shares of stock to a company's employees.

Definition

According to the Strategic Management by Parnell (4th edition),

Employee Stock Ownership Plans (ESOPs). Formal programs that transfer shares of stock to a company's employees.

According to the Strategic Management by David and David (15th edition),

Employee Stock Ownership Plans (ESOP). A tax-qualified, defined-contribution, employee-benefit plan whereby employees purchase stock of the company through borrowed money or cash contributions.
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